Alphabet’s stock has surged 47% year to date, outperforming the Nasdaq Composite. The company is successfully monetizing its AI technology across consumer apps and Google Cloud, driving strong growth. With a $155 billion backlog in its Cloud business and impressive earnings growth, Alphabet shows potential for further upside.

AI is driving strong growth for Google, with its Gemini AI app now boasting over 650 million monthly users. The company is benefiting from AI in advertising revenue on Search and YouTube, as well as in Google Cloud, where demand for AI cloud services remains high. Google’s AI leadership positions it for continued success.

Despite its recent surge, Alphabet’s stock trades at a reasonable forward earnings multiple of 25 based on the 2026 consensus earnings estimate. Strong top- and bottom-line growth in the third quarter, with adjusted earnings per share up 35% year over year, indicates the company’s potential for new highs. Consider investing $1,000 in Alphabet for long-term growth.

Read more at Nasdaq: Think It’s Too Late to Buy Alphabet (Google) Stock? Here’s the 1 Reason Why There’s Still Time.